Clash of Bearish and Bullish side / Neutral Gold on Short-term
Gold's general overview: Tight session today and personally, I don’t think that current session can deliver more Bullish action. With Buying pressure evident from DX decline, Gold remains weak on a near new Intra-day High but there are certain aspects that make me sceptical on whether or not this can be sustainable. Those are: Extremely strong recovery on Bond notes with the #10Y near the October Resistance (with DX on losses counterbalancing the rise on Bond notes, it is indeed an clash which side / stronger correction marker will prevail). In addition to that the Stock markets has reversed Intra-day and are near a #4 day High. Based on the above, Gold (Xau-Usd as always on my comments) shouldn’t be above its #1,795.80 Short-term Resistance. It is important to note that the Price-action is above the Daily chart Bollinger band (Lower Line) as there is still room for the downtrend. With all risks involved and Weekend break ahead, I will wait for the area to be engulfed and then make my move.
Technical analysis: Nothing out of the ordinary as Gold still didn’t broke the last barrier of #1,762.80 on Spot prices, confirming the last downside wave towards the #2-Month Support Zone. Daily and Hourly charts turned Bearish again but based on the Weekly chart signals since end of May #2020, it is safer to Buy after every red Weekly candle (those were on June #4, July #9 and August #2). The DX is on critical crossroads and should stay above #90.30 as that is Highly likely to have strong effect on Gold. Gold is now Technically equipped for an decline, but it is still early to speculate on exact timing. Technically, both on Oscillators and Candlesticks, Gold should lose value with every Hourly candle minimum to #1,762.80. (Lower Low extension).
My position: I am still on sidelines waiting for an clear confirmation, if #1,788.80 Support breaks / only then I will think about Selling, while on the other side, #1,800.80 psychological barrier and #1,803.80 are the nearest Resistances lines, so break above could deliver #1,817.80 extension (less likely since Gold limited the uptrend). I will carefully monitor from sidelines until the Trading pattern emerges.
Technical analysis: Nothing out of the ordinary as Gold still didn’t broke the last barrier of #1,762.80 on Spot prices, confirming the last downside wave towards the #2-Month Support Zone. Daily and Hourly charts turned Bearish again but based on the Weekly chart signals since end of May #2020, it is safer to Buy after every red Weekly candle (those were on June #4, July #9 and August #2). The DX is on critical crossroads and should stay above #90.30 as that is Highly likely to have strong effect on Gold. Gold is now Technically equipped for an decline, but it is still early to speculate on exact timing. Technically, both on Oscillators and Candlesticks, Gold should lose value with every Hourly candle minimum to #1,762.80. (Lower Low extension).
My position: I am still on sidelines waiting for an clear confirmation, if #1,788.80 Support breaks / only then I will think about Selling, while on the other side, #1,800.80 psychological barrier and #1,803.80 are the nearest Resistances lines, so break above could deliver #1,817.80 extension (less likely since Gold limited the uptrend). I will carefully monitor from sidelines until the Trading pattern emerges.
- My official and only Telegram Channel: t.me/goldenBear88
- Few other un-official channels are not mine, they are copies using my real information (impersonating me and my work / identity) so keep that in mind and beware of those.
- Few other un-official channels are not mine, they are copies using my real information (impersonating me and my work / identity) so keep that in mind and beware of those.
